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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15447
Experience:  15years with H & R Block. Divisional leader, Instructor
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if i submit a direct debit installment request with my 2012

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if i submit a direct debit installment request with my 2012 return what is the maximum amount that would not result in a lien being issued

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.


Taxpayers that enter into a Direct Debit Installment Agreement (DDIA) for unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:



  • child">Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.

  • The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.

  • The IRS will also withdraw liens on existing Direct Debit Installment greements upon taxpayer request.


Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.


Robin D. :

If you owe $10,000 or less they will not place a lien. If you owe $25,000 or less they will generally not place a lien.

Robin D. :

For taxpayers that did or do have a lien placed they need to file form 12277

Robin D. :

This is a request for the lien to be withdrawn.

Customer:

if I enter the agreement then later should need to ammend a past return that results in a small amount due (omitted a very small w-2 from 2011 return) will that affect my agreement if i satisfy the ammended return with a check

Robin D. :

It should not effect the 2012 agreement

Customer:

one last question....the amount owed will likely be less than 25000...what would be the minimum montly payment i could request...how does interest and penalties play into this...( i filed an extension)

Robin D. :

The monthly amount would depend on what you could afford.
The streamline option allows a taxpayer to take 5 years bit interest continues to accrue during an installment payment time.

Customer:

Thanks a bunch...I will rate your answers excellent!

Robin D. :

You are most welcome.

Robin D. :

Your positive rating is always thanks enough.


 

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